Want more from Front Office Sports
in your search results?
Take-Two Interactive has completed its acquisition of mobile game developer Zynga in a deal valued at $12.7 billion.
The acquisition — first announced in January 2022 — brings together two of the largest video game makers in the U.S. and immediately makes Take-Two a major player in a global mobile gaming market projected to reach $153.5 billion by 2027, per ResearchandMarkets.com.
Take-Two’s purchase of the San Francisco-based developer will be funded with $2.7 billion in financing from JPMorgan Chase, Take-Two’s balance sheet, and a debt issuance.
- Zynga is the mobile game maker behind “FarmVille” and “Words with Friends.”
- It generated $695 million in revenue in Q4 2021, an 8% increase year-over-year.
- Its online game division reeled in $534 million in revenue in Q4, up 7% year-over-year.
- Full-year revenue for Zynga reached $2.8 billion in 2021, up 42% compared to FY2020.
Take-Two’s acquisition follows a strong fiscal Q4 for the company, which owns major video game publishers including Rockstar Games and 2K. The company generated $930 million in revenue during the quarter, surpassing its forecast of between $835 million and $885 million.
The stronger-than-expected results were driven by its digitally delivered revenue, which reached $833 million in fiscal Q4, up 9% year-over-year. The largest contributor was “NBA 2K22,” which has sold more than 10 million copies since Sept. 9, 2021.
Big Deals
Take-Two’s purchase of Zynga adds to another major acquisition in the gaming industry. In January, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion. The all-cash deal is pending regulatory approvals.
